China food scandal: US parent withdraws products

Published 6:24 AM ET Sun, 27 July 2014
Reuters

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The parent company of a scandal-hit Chinese food supplier said it is withdrawing all products made by the subsidiary.

Shanghai Husi Food Co Ltd, owned by Illinois-based OSI Group LLC, is at the center of a major food safety scandal, which has spread from China to Hong Kong and Japan, over allegations it mixed fresh and expired meat.

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Workers at the Shanghai Husi Food Co

In a statement posted on its website late Saturday, OSI Group said it would "withdraw from the marketplace" all products made by Shanghai Husi, and that it was conducting an internal investigation into current and former senior management.

The scandal, which has dragged in global food brands including McDonald's Corp, KFC-parent Yum Brands Inc. and Starbucks Corp.., was triggered by a local television report last week showing staff at Shanghai Husi using long-expired meat. The report also alleged the firm forged production dates.

Food safety has been a big concern for Chinese consumers after dairy products tainted with the industrial chemical melamine sickened many thousands and led to the deaths of six infants in 2008.